Ichimoku analysis (8-hour)
Tenken-Sen- $1574
Kijun-Sen- $1567
Gold is trading highly volatile and lost more than $15 on the slight recovery in the global stock market. The new coronavirus has been declared a global emergency by WHO. The death toll has been increased to 213 in China and number cases confirmed surged past 9000. The spread of coronavirus is supporting the demand for Safe-haven assets like yen, gold at lower levels. The yellow metal hits an intraday low of $1571 and is currently trading around $1572.18.
US economy grew at 2.3% last year compared to 2.9% previous year, much below the White House target 2.9%.US dollar index shown a minor decline after the release of data.
The US 10 year bond yield shown a minor recovery of more than 4.5% after more than 20% of the decline. The spread between US 10- year and 2 years has narrowed to 17.3 bps from 35.7 bps.
The near term resistance is around $1588, any break over targets $1600/$1611. On the flip side, the immediate support is at $1565 and any break will drag the gold underneath till $1555/$1545 likely. Extreme bearishness only under $1530.
It is good to buy on dips around $1570 with SL around $1560 for the TP of $1600/$1611.
